Feb. 5 (Bloomberg) -- South Africa’s mineral resources
minister said the country must ensure its mining industry, the
world’s largest producer of platinum and chrome, remains
competitive even as the ruling African National Congress looks
for ways to impose more taxes or royalties.

“For a thriving mining industry in South Africa, we’ve got
to compete against Australia, Canada and all other mining
jurisdictions,” Susan Shabangu said in a speech in Cape Town
yesterday. “If there are any taxes which must be implemented,
we will have to be mindful we have to come up with a tax
dispensation which is going to make us competitive.”

At its national conference in December, the ANC rejected
proposals to nationalize mines in favor of a tax review. The
party is considering a “resource-rent” tax or higher
royalties, details of which must be worked out by the
government, Enoch Godongwana, head of the ANC’s economic
transformation committee, said Dec. 20.

Shabangu’s comments yesterday came at start of the four-day
annual Investing in African Mining Indaba conference, a
gathering of more than 7,500 industry executives. She’s due to
address the event today.

Mining companies in Africa’s largest economy are battling
to contain rising production costs after a series of strikes
last year led to above-inflation wage increases. Nine platinum-mine shafts were shut in the second half of 2012, according to
the Department of Mineral Resources. Anglo Platinum Ltd., the
largest producer of the metal, on Jan. 15 announced plans to
idle four shafts.

Ministerial Discretion

Mining makes up about 9 percent of gross domestic product
and accounts for two-thirds of exports.

Shabangu also said yesterday the government will address
industry concern that planned changes to the country’s Mineral
and Petroleum Resources Development Act will increase
ministerial discretion over mining.

“These are proposals and it’s open for everybody to make
their inputs,” she told reporters. Investors “need to come
forward and say what’s not fair and for us to come up with the
legislation which will be workable and while will also be able
to attract investment.”